The tech sector has bounced back from the stock market chaos in April. The Nasdaq Composite is up 7% on the year, and many of the biggest tech companies are at or near all-time highs, including market leader Nvidia, as well as Microsoft and Meta Platforms.
Those are all quality companies, but they're far from the only good long-term investments in this market sector. Let's check out a few other tech stocks that should excel over the next decade.
Image source: Getty Images.
1. ASML
Semiconductor companies are a crucial part of the artificial intelligence (AI) boom. ASML (ASML 0.60%) supports the industry with the lithography equipment needed to manufacture semiconductors. This equipment uses light to transfer patterns onto a semiconductor's silicone wafer.
The company's most advanced products are its extreme ultraviolet (EUV) lithography systems that are used for AI chips. ASML is also the only company to manufacture EUV lithography systems right now, and because of how complex these machines are, it's not a market a competitor could enter overnight.
The biggest threat to ASML in this regard is China, which is investing in its own domestic EUV lithography machines. It's a valid concern, but making a commercially viable machine that matches the quality ASML offers could take several years or longer.
NASDAQ: ASML
Key Data Points
ASML stock has fallen 25% over the past year as its earnings reports have been hit or miss. That's not unusual for its business model, though. The company sells extremely expensive products (EUV lithography machines start at $220 million) and doesn't move a high volume.
Trading at a forward price-to-earnings (P/E) ratio of 29, ASML isn't overly expensive, and leadership is expecting 2025 and 2026 to be growth years based on conversations with its customers. The current dip gives new investors the chance to buy a wide-moat business at a fair price.
2. Taiwan Semiconductor Manufacturing
Speaking of semiconductor companies, Taiwan Semiconductor Manufacturing (TSM +0.42%), or TSMC, is another business with a dominant market position. TSMC is the world's top semiconductor foundry, with a nearly 68% market share. Many leading tech companies, including Nvidia, Apple, and Advanced Micro Devices, rely on TSMC to make their chips.
NYSE: TSM
Key Data Points
There's no shortage of reasons to be bullish on TSMC. Revenue and net income have both grown considerably -- up 134% and 110% over the past five years, respectively. Management projections are for revenue to increase at a 20% compound annual growth rate through 2029.
TSMC's growth prospects also look promising because of its ambitious expansion plans. It's working on nine new production facilities this year in Taiwan, the U.S., Japan, and Germany.
You don't need to pay a premium for this semiconductor stock, either. It's trading at a forward P/E ratio of 24, less than the Nasdaq-100. Given that semiconductors are an essential component of all kinds of technology, as well as the excellent revenue projections for TSMC, I'd say the current price is a bargain.
3. The Trade Desk
The Trade Desk (TTD +3.07%) is a different type of AI stock than the first two companies on this list. Its business is advertising, and specifically, it's a demand-side platform (DSP). A DSP is a software that connects advertisers with digital companies that have ad space. Advertisers upload their ads and set a budget, companies with ad space put in their bid requests, and The Trade Desk's software acts as the middleman between the two.
In 2023, The Trade Desk launched Kokai, a platform with AI tools to help advertisers with budget allocation, bid strategy, and audience targeting. According to the company's data analysis, campaigns on Kokai have delivered a 43% lower cost per unique household, 24% lower cost per click, and 27% lower cost per action on average.
NASDAQ: TTD
Key Data Points
The Trade Desk's share price plummeted after it missed revenue expectations for the fourth quarter of last year. It's currently down 36% on the year, but that's arguably an overreaction. This was the first time The Trade Desk missed guidance in eight years, and it returned to form in the first quarter of 2025. Revenue grew 25% to $616 million and net income grew 8% to $51 million.
Shares have never been cheap, and even after the recent downturn, The Trade Desk is trading at a forward P/E ratio of 41. But advertising is a rapidly growing industry, especially digital ads. Precedence Research forecasts that global digital ad spend will grow from $650 billion in 2025 to about $1.5 trillion in 2034. If you're looking for high-growth stocks, consider buying some shares.
